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V3020-23 21 November 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Use of the objective estimation method depends on activity similarity and common management

A taxpayer engaged in livestock farming has enquired whether they may continue using the objective estimation method. The DGT clarifies that if the activities of the community of property are identical or similar and there is common management, the limits are calculated collectively.

The question raised

Question posed: Whether the taxpayer may continue to determine the net income of their livestock activity using the objective estimation method.

The DGT's ruling

If the activity of the community of property is not identical or similar to that of the taxpayer, their participation does not affect the application of the objective estimation method. However, if the activities are identical or similar and there is a common management sharing personal or material resources, the calculation of the exclusionary thresholds is carried out jointly. If the sum of both activities exceeds the limits, said method may not be applied.

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